Strong interim result in Phase I/IIa DIABECELL® trial

22 November 2012: Sydney, Australia and
Auckland, New Zealand – Living Cell Technologies
Limited (ASX: LCT; OTCQX: LVCLY) today announced the results
of an interim analysis of its Argentinian Phase I/IIa
clinical trial for DIABECELL®, a breakthrough treatment for
people with unstable type 1 diabetes.

The results
clearly demonstrated a clinically significant reduction in
HbA1c, insulin dose and unaware hypoglycaemia, with greater
benefit being seen in the patient group receiving the higher
dose of DIABECELL.

The trial, which is ongoing, involves
eight patients split into two groups of four. Group one
received two 5,000 IEQ/kg doses of DIABECELL (islet
equivalents per kilogram of body weight). Group two received
two 10,000 IEQ/kg doses of DIABECELL. In both groups, the
second dose was implanted 12 weeks after the first. At the
time of this interim analysis, group one patients were at 24
weeks follow up after the second transplant, and group two
patients were at 12 weeks follow up after the second
transplant.

In the second group of patients (those
receiving the higher dose of two implants of 10,000 IEQ/kg)
the most significant clinical benefits were:

• average
insulin dose reduced by 20% • a reduction of HbA1c
from a pre-transplant average of 8.6% to an average of 6.7%
at 12 weeks following the second implant• up to 70%
reduction in unaware hypoglycaemic
events.• “Most type 1 diabetic patients who
cannot attain reasonable control of their disease by
conventional intensive insulin treatment would welcome the
degree of control achieved with two doses of DIABECELL,”
said Professor Bob Elliott, Chief Scientific and Medical
Officer, LCT. “The reduction in both average daily insulin
dose and HbA1c is clear demonstration of the positive effect
of the DIABECELL transplant.”

DIABECELL is the first
islet transplant treatment that does not require ongoing
administration of debilitating immunosuppression drugs.
DIABECELL is owned by the joint venture company Diatranz
Otsuka Limited, in which LCT and Otsuka Pharmaceutical
Factory both have a 50% interest.

“This interim analysis
has been used to inform our 20 patient Phase IIb study, the
start of which has also been announced today,” said Dr
Andrea Grant, Chief Executive, LCT. “With each trial
analysis we grow increasingly confident that DIABECELL will
bring many benefits to patients with unstable type 1
diabetes, and we remain intently focused on reaching the
market by 2016.”

– Ends
–For further
information: www.lctglobal.comAbout
DIABECELL Diabetes is usually treated with
insulin replacement. A serious and potentially fatal
complication associated with intensive insulin replacement
therapy is unaware hypoglycaemia. Episodes of unaware
hypoglycaemia occur when, without associated symptoms or
warning, blood glucose levels drop suddenly. Some patients
require significant time and resources from specialist
healthcare professionals and have a poor prognosis: lower
quality of life, more micro vascular and pregnancy
complications and shortened life expectancy.Treatment
with DIABECELL® involves transplanting pig pancreatic islet
cells into a patient’s abdomen to boost insulin production
and help regulate blood glucose levels. The cells are
encapsulated with IMMUPEL™ to prevent the immune system
rejecting them as foreign. This proprietary technology
ensures the cells can deliver their beneficial effects
without the patient requiring immunosuppressant
drugs.DIABECELL is owned by the joint venture company
Diatranz Otsuka Limited, in which LCT and Otsuka
Pharmaceutical Factory both have a 50% interest.For a
summary of DIABECELL’s clinical trial programme please see
the DIABECELL clinical trial update on LCT’s website www.lctglobal.com or DIABECELL clinical trial
update.

About Living Cell
TechnologiesLiving Cell Technologies (LCT)
leads the world in developing cell-based therapeutics to
treat diseases with high unmet clinical need. Its
proprietary cell encapsulation technology IMMUPEL™ allows
for cell transplantation without the need for
immunosuppressant drugs.LCT’s lead therapeutic
candidate DIABECELL® is indicated for the treatment of
patients with type 1 diabetes, especially those suffering
from life threatening episodes of unaware hypoglycaemia (low
blood sugar), a dangerous and potentially fatal diabetes
complication. DIABECELL is currently in Phase II clinical
trials in both New Zealand and Argentina.In 2011, LCT
formed a partnership with Otsuka Pharmaceutical Factory Inc
(OPF) in which the joint venture Diatranz Otsuka Limited
(NZ) was established. Valued at A$50m on formation, LCT
vested the DIABECELL product and associated IP into the JV,
while OPF vested A$25m to fund the final phase of
development of DIABECELL through to market approval. Both
LCT and OPF are 50:50 shareholders in the current and future
value generated by DIABECELL and the associated IP.LCT
has also developed NTCELL®, a choroid plexus cell product,
to treat neurodegenerative diseases such as Parkinson’s
disease and stroke. NTCELL’s trial results indicate
potential for protecting, repairing and possibly
regenerating brain tissue which would otherwise die.LCT
is incorporated in Australia. Research and development,
operations and manufacturing facilities are based in New
Zealand.

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